1 Chapter 14 Planning Information Systems

2 Why Plan? What is Planning? –An IS plan is a statement of how management foresees its ISs in the future. –IS plan includes: Activities planner believes will help achieve goals. Program for monitoring real-world progress. Means for implementing changes in the plan.

3 Why Plan? Business Planning –Define organization’s goals and objectives –Determine resources needed to attain objectives –Create policies to govern the acquisition, use, and distribution of resources –Provide for any changes in objectives

4 Approaches to Planning Top-down Planning –Focuses on organizational goals first, then on the needs of business units Bottom-up Planning –Focuses on needs of business units first, then on organizational goals Top-down, or goal-driven, planning considers the organization as a whole. In bottom-up planning, the process starts with consideration of individual concerns.

5 Approaches to Planning Planning by Critical Success Factors –Executives define critical success factors first so planning can address resources to support those factors Critical success factor: issues identified as critically important to business success Business planning by critical success factors

6 Information Systems Planning Advances in IS planning since the 1970s

7 Key elements of an IS Plan –Corporate mission statement –Vision for IT within organization –IS strategic and tactical plans –Operations plan to achieve mission and vision –Budget to ensure resources are available

8 The steps of information systems planning

9 Prerequisites for effective IS planning Prerequisites for Information Systems Planning

10 The Corporate and IS Mission Statements –The corporate mission statement details the purpose of the organization and its overall goals. –IS mission statement outlines the purpose of ISs in the organization.

11 The IT Vision –Wish list of what IS managers would like to see in terms of hardware, software, and communications, to contribute to goals of the organization

12 Strategic and Tactical IS Planning –IS strategic plan details what is to be achieved –IS tactical plan describes how goals will be met and by when Rigid and dynamic planning

13 Important Factors in IS Tactical Planning –Flexibility –Compatibility –Connectivity –Scalability –Standardization –Total Cost of Ownership Total cost of ownership per laptop computer

14 IS Planning Initiatives Four groups of people who initiate new or improved ISs from different perspectives –Top management –IS professionals –Line managers –Users IS planning can be driven by a variety of sources. A survey of 100 CEOs and other executives shows that IT projects are initiated by business unit managers and IT managers, but also by top executives.

15 The Champion High-ranking officer who commands sufficient political clout to include IS in planning Most effective champions are not IS professionals.

16 The Champion A successful champion is a leader who can: –Promote the vision of IT in the organization. –Inspire top management and subordinates alike. –Remove barriers to realizing vision. –Focus on both short-term and long-term objectives. –Be a torchbearer for making change happen. –Drive accountability to lowest organizational level.

17 The Systems Analyst as an Agent of Change Planning almost always deals with change, which people tend to resist. Systems analysts must convince users that the new system will help them in their work. –Explain how a new system will improve business performance –Train individuals in the use of the new system Systems analysts facilitate change by 1. motivating, 2. educating, and 3. training.